Israel Inflation January 2020

Israel

Israel: Inflation falls further below target range in January

February 14, 2020

Consumer prices fell 0.4% in January over the prior month, down from December’s flat reading. January’s fall was driven by lower clothing prices.

Inflation decreased from 0.6% in December to 0.3% in January, moving further below the Bank of Israel’s 1.0%–3.0% target range. Recent low inflation comes on the back of weak oil prices and a strong currency. The latest inflation reading will add to calls for monetary easing, although the Central Bank appears reluctant to lower rates, and is instead opting to intervene in the FX market in a bid to support the currency and price pressures.

FocusEconomics Consensus Forecast panelists expect inflation to average 0.9% in 2020, which is down 0.1 percentage points from last month’s forecast. For 2021, our panelists expect inflation to average 1.5%.


Author:, Economist

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Israel Inflation Chart


Israel Inflation January 20 20

Note: Year-on-year and month-on-month variation consumer price index in %.
Source: Central Bureau of Statistics (CBS).


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